NASDAQ$DENN

Denny's Corp. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported a 1.7% increase in total operating revenue, driven by Denny's domestic system-wide same-restaurant sales growth and Keke's revenue, with operating income at $14.9 million and adjusted EBITDA at $22.3 million.

Denny's Corporation reported a 1.7% increase in total operating revenue to $116.9 million for the second quarter of 2023. Denny's domestic system-wide same-restaurant sales grew by 3.0%. The company opened 10 franchised restaurants and completed four remodels. Operating income reached $14.9 million, and net income was $8.5 million, or $0.15 per diluted share. Adjusted EBITDA was $22.3 million, and adjusted free cash flow was $12.7 million. The company repurchased $10.4 million of common stock.

  • Total operating revenue grew 1.7% to $116.9 million.
  • Denny's domestic system-wide same-restaurant sales grew 3.0%.
  • Operating income was $14.9 million, compared to $13.9 million in the prior year quarter.
  • Adjusted EBITDA was $22.3 million.

Headline financials

Total Revenue

$117M

Previous: $115M+1.7%
EPS (adj)

$0.14

Previous: $0.11+27.3%
Franchise Operating Margin

50.9%

Previous: 46.4%+9.7%
Company Restaurant Operating Margin

15.1%

Previous: 8.8%+71.6%
Adjusted EBITDA

$22.3M

No prior period
Free Cash Flow

$12.7M

Previous: $6.6M+92.4%
Net Income

$8.5M

Previous: $23M-63.0%
Operating Income

$14.9M

Previous: $13.9M+7.5%
Gross Profit

$39.9M

Previous: $31.3M+27.3%
Cash & Equivalents

$1.13M

Previous: $1.36M-16.9%
Total Assets

$466M

Previous: $393M+18.5%
Stock-Based Comp

$2.52M

Previous: $3.51M-28.1%

Revenue & EPS history

Denny's · Revenue · Quarterly

$117M

Q2 2023+1.7%vs Q2 2022
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Denny's · $117M total across 2 segments · Q2 2023

  • Franchise and License Revenue
    $62M-5.8%
  • Company Restaurant Sales
    $54.9M+11.6%

Forward guidance

The following full year 2023 guidance reflects management's expectations that the current consumer and economic environment will not change materially:

Tailwinds

  • Denny's domestic system-wide same-restaurant sales between 3% and 6%.
  • Consolidated restaurant openings of 35 to 45, including 8 to 12 new Keke's restaurants.
  • Commodity inflation between 1% and 3%.
  • Labor inflation of approximately 4%.
  • Consolidated total general and administrative expenses between $78 million and $80 million.

Headwinds

  • Consolidated net decline of 15 to 25.
  • Share-based compensation expense approximately $12 million which does not impact Consolidated Adjusted EBITDA*.
  • The Company is not able to reconcile the forward-looking non-GAAP estimates set forth above to their most directly comparable U.S. generally accepted accounting principles (GAAP) estimates without unreasonable efforts because it is unable to predict, forecast or determine the probable significance of the items impacting these estimates, including gains, losses and other charges, with a reasonable degree of accuracy.
  • Accordingly, the most directly comparable forward-looking GAAP estimates are not provided.
  • Consolidated Adjusted EBITDA* between $86 million and $90 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 16 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.0%

Avg return

Earnings day

-0.9%

Avg return

5 days after

-2.4%

Avg return

30 days after

41%

26 / 64 earnings

Positive

+50.1%

Q3 2025

Best reaction

-23.8%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025
Q3 2025+50.1%+48.7%+50.1%
Q2 2025-3.3%-0.5%+31.8%
Q1 2025+3.2%+17.9%+2.6%
Q4 2024-23.8%-27.5%-41.5%
Q3 2024-17.2%-5.9%-3.8%
Q2 2024-1.6%-12.2%-11.9%
Q1 2024-2.1%-1.3%-15.2%
Q4 2023-10.1%-9.9%-13.7%
Q3 2023+1.2%+7.5%+11.7%
Q2 2023-11.2%-12.9%-19.1%
Q1 2023-5.4%-4.1%+1.6%
Q4 2022+1.3%+3.6%-11.0%
Q3 2022+2.6%+4.1%+10.6%
Q2 2022+8.1%+0.4%+2.1%
Q1 2022-14.8%-18.9%-20.4%
Q4 2021-2.6%-3.4%-11.9%
Q3 2021-2.2%
Q2 2021+5.8%
Q1 2021-4.3%
Q4 2020-0.9%
Q3 2020-13.6%
Q2 2020+4.9%
Q1 2020+4.6%
Q4 2019-3.4%
Q3 2019-3.2%
Q2 2019+3.8%
Q1 2019+1.5%
Q4 2018-3.6%
Q3 2018+20.6%
Q2 2018-7.1%
Q1 2018-14.4%
Q4 2017+3.7%
Q3 2017+1.8%
Q2 2017+8.4%
Q1 2017-6.5%
Q4 2016+12.0%
Q3 2016+6.1%
Q2 2016-2.0%
Q1 2016+6.1%
Q4 2015+5.1%
Q3 2015-6.3%
Q2 2015+8.0%
Q1 2015-0.3%
Q4 2014+5.6%
Q3 2014+10.8%
Q2 2014+9.9%
Q1 2014+5.4%
Q4 2013+0.0%
Q3 2013-1.9%
Q2 2013-3.6%
Q1 2013+0.0%
Q4 2012-1.8%
Q3 2012-1.5%
Q2 2012-4.2%
Q1 2011-4.1%
Q1 2012+3.4%
Q4 2009-1.4%
Q4 2011-1.4%
Q3 2010-3.8%
Q3 2011-3.8%
Q4 2010-7.8%
Q2 2011-7.8%
Q2 2010-3.0%
Q1 2010+11.1%

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